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TH Quiz No.1: Income Taxation (TAX 101)

1) Taxation is the process by which the sovereign raises income to defray expenses of the government through compulsory levies. 2) One of the primary purposes of taxation is to secure revenue for the support of the government. 3) The power of taxation is inherent in sovereignty and essential to the existence of every government. It is essentially a legislative function that can be exercised even without mention in the constitution.

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183 views

TH Quiz No.1: Income Taxation (TAX 101)

1) Taxation is the process by which the sovereign raises income to defray expenses of the government through compulsory levies. 2) One of the primary purposes of taxation is to secure revenue for the support of the government. 3) The power of taxation is inherent in sovereignty and essential to the existence of every government. It is essentially a legislative function that can be exercised even without mention in the constitution.

Uploaded by

Maricel Miel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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INCOME TAXATION

(TAX 101)

TH Quiz No.1

Instruction: Read each question carefully. Select the best answer among the
choices given. Supply the blanks with the letter pertaining to your
answer.

The process by which the sovereign raises income to defray expenses of the
1
C government is called

a. Subsidy
b. Tariff
c. Taxation
d. Tribute

c 2 In case of conflict between tax laws and generally accepted accounting principles

a. Both tax laws and GAAP shall be enforced


b. GAAP shall prevail over tax laws
c. Tax laws shall prevail over GAAP
d. The issue shall be resolved by the court

D 3 Which of the following has no power of taxation?

a. Provinces
b. Cities
c. Barangays
d. Barrios

B 4 "Schedular system of income taxation" means

a. All types of income are added together to arrive at gross income


b. Separate graduated rates are imposed on different types of income
c. Capital gains are excluded in determining gross income
d. Compensation income and business/professional income are added
together in arriving at gross income

c 5 One of the following is a primary purpose of taxation

a. Protection of local industries against foreign competition through


imposition of high custims duties on imported goods.
b. Reduction of inequalities in wealth and income by imposing
progressively higher tax rates
c. To secure revenue for the support of the government
d. Strengthening of anemic enterprises by giving tax exemptions

C5 One of the following is a primary purpose of taxation

a. Protection of local industries against foreign competition through


imposition of high custims duties on imported goods.
b. Reduction of inequalities in wealth and income by imposing
progressively higher tax rates
c. To secure revenue for the support of the government
d. Strengthening of anemic enterprises by giving tax exemptions

D 6 All of the following, except one, are canons of a sound tax system

a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Inherent sovereignty

C7 Under the basic principle of sound tax system, the government should not incur a
deficit.

a. Theoretical justice
b. Administrative feasibility
c. Fiscal adequacy
d. None of the above
D
8 The following, except one, are basic principles of a sound tax system

a. It should be capable of being effectively enforced


b. It must be progressive
c. Sources of revenue must be sufficient to meet government expeditures
and other public needs
d. It should be exercised to promote public welfare

D 9 The power of taxation can only be exercised by the lawmaking body.

a. Subject to constitutional and inherent limitations


b. Equality of theoretical justice
c. Legislative in character
d. Inherent in sovereignty
C10 The power of taxation is inherent in sovereignty being essential to the existence of
every government. Hence, eveen if not mentioned in the Constitution, the state can
still exercise the power.

It is essentially a legislative function. Even in the absence of any constitutional


provision, taxation power falls to Congress as part of the general power of law
making.

a. False, False
b. False, True
c. True, True
d. True, False

C 11 They restrict the exercise of the power of taxation although they are not embodied
in the Constitution.

a. Theoretical Justice
b. Legislative in character
c. Inherent limitation
d. Constitutional Limitations

A tax must be appropriated and spent for public purpose. Which of the following is
12
D not a public purpose?

a. Dole-out to victims of calamity


b. Pantawid Pamilyang Pilipino Program (4 Ps)
c. Improvement of sugar industry
d. Construction of a barangay chapel

C 13 Which of the following activities is not a public purpose?

a. Construction of bridges
b. Payment of Christmas bonuses of government officials and employees
c. Opening of road on tract of land owned by a private individual
d. Scholarship to poor but deserving students

B 14 Question 1: Can the state tax the Armed Forces of the Philippines?
Question 2: Are the government-owned and controlled corporations subject to
tax?

a. Yes, No
b. Yes, Yes
c. No, Yes
d. No, No
C 15 No person shall be imposed for non-payment of

a. Property tax
b. Excise tax
c. Poll tax
d. Income tax

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